5 reasons why investing in cybersecurity is best for your business
As businesses grow and develop, investment in different aspects of the company becomes more necessary. Logistics require more human resources, product development needs more financial capital, and consumer relations calls for more training. Elements such as these are critical for a business to survive in a competitive market and expand its industry success. Unfortunately, most companies overlook the importance of cybersecurity, a neglected component of business operations, security, and sales.
Technology has opened new doors for businesses of all sizes. This infusion of tech into the business model and workflow of companies has enabled these businesses to reach audiences around the world, lower marketing costs, streamline manufacturing/creation processes and generate greater revenue numbers. However, technology has also presented a very real and dangerous threat: cybersecurity attacks.
Former Cisco Systems CEO, John Chambers once said, “There are only two types of companies: Those that have been hacked and those that don’t know they have been hacked.” The internet has created countless opportunities for cybercriminals to find, target, and exploit businesses with weak, faulty, or non-existent cybersecurity measures. The lack of cybersecurity protocols and dedicated investment leaves businesses with an increased risk of incurring a system breach, whether it be internal or external.
According to Risk Based Security’s 2020 end-of-year breach report, the total number of recorded breaches sat at 1,923, with the total number of records exposed topping 37 billion — a 141 percent increase compared to the previous year. Nearly 700 of these reported breaches used a ransomware attack method, a dramatic increase from past years. In part due to the COVID-19 pandemic, the healthcare industry experienced the largest number of cybersecurity breaches.
In the event of a successful breach, businesses are likely to witness a financial hit. In 2020, the average cybersecurity breach cost roughly $8.64 million in the United States. Companies operating in the healthcare and education sectors are the top two industries likely to incur the largest monetary losses. When affecting small to mid-sized businesses, these financial losses may be smaller in value, but lead to effects such as major downsizing and lay-offs. Worst of all, cybersecurity breaches devalue a company’s reputation and consumer trust. Often, the information stolen or abused is consumer data. Scenarios like this make it difficult for affected businesses to recover from the intrinsic damage done by the hacking party.
This reality calls for businesses to take serious control of their cybersecurity plan. Investment in digital security is no longer a new frontier or a low-ROI producing choice. Instead, the best proactive measure businesses can take in 2021 is to ensure they are dedicating enough time, resources, and capital to their cybersecurity makeup.
Here at five reasons why your business needs to invest in cybersecurity before a breach can occur:
1. Cyberattacks aren’t going away
As the digital economy continues to expand, and more businesses are shifting to remote work and cloud computing, more attack opportunities will be presented to cybercriminals. With companies moving away from in-office business models, in-home settings will present more security vulnerabilities and possible access points for hackers. In addition, with consumers opting for more convenience through online shopping and researching, more sensitive data is being collected and stored by the relating businesses, giving criminals an incentive to digital hunt for this information.
2. It’s a Cost-Saving tool
A cybersecurity plan acts as a strong preventative measure to safeguard against the possibility of a breach. Any investment into cybersecurity outweighs the potential cost associated with a real attack. It is a fact that 60 percent of small businesses who fall victim to a cybersecurity breach go out of business within six months. Even if they do not go out of business, expensive costs will follow the fallout with operational disruption, possible legal action, intellectual property theft, and company reputation damage.
3. Adhere to compliance and regulations
In order to freely and legally operate on the internet, several industry-specific, state, and federal compliance laws and regulations must be met. These security compliance guidelines such as ISO27001, SOC 2, HIPAA, CCPA, and more are focused on ensuring companies are doing everything necessary to demonstrate their ongoing commitment to data protection and information security. Investing in a correct cybersecurity plan ensures that a business is up and running with the correct data architecture and behaviors to follow compliance requirements.
4. Bolster confidence with investors and customers
The investment in cybersecurity showcases to investors and customers alike that data privacy and digital security will be a top priority. When businesses are faced with cybersecurity breaches, there is often a drop in share prices, consumer confidence, and general funding. While a cybersecurity plan doesn’t eliminate all the potential risks, it does prepare for attacks and how to quickly and efficiently address them if an incident does occur. Having an in-depth plan in place says to stakeholders that you value the digital integrity of this company, and will work to actively protect all assets.
5. Business is moving online and Mobile-Ready
It’s no secret that mobile devices have become the go-to gadget for businesses and consumers alike. Today, being mobile-ready isn’t a luxury, but a requirement. Businesses need to be able to enter data, process transactions, and communicate with co-workers all on the go. The repeated use of these casual smart devices, combined with various user compliance and security behavior, makes businesses a threat to cyberattacks. Through investment into a cybersecurity plan, businesses can mitigate the security risk associated with mobile devices and the influx of on-the-go work habits.
Ready to invest in cybersecurity?
If you’re looking for more guidance on how to move your cybersecurity program forward, CDG can help. We are shifting the cybersecurity consulting paradigm to address the needs of mid-market, cloud-native or cloud-reliant companies who are experiencing rapid growth.
Founded in 2016 by global security expert Lou Rabon, our nimble team draws on decades of experience and diverse technical expertise to deliver a full spectrum of information security advisory and implementation services on a fixed-cost basis. Our right-sized, results-driven approach will help you meet your immediate needs, but also ready you to navigate what’s ahead. Get in touch, and see what results are possible for your organization.